Get you up to speed: Alibaba sues US military over labelling it a ‘Chinese military company’
Alibaba has filed a lawsuit against the United States Department of Defense in federal court in San Jose, California, contesting its designation as a “Chinese military company.” The e-commerce giant asserts that the claim has “no basis in fact or law” and seeks the removal of its name from a blacklist of companies allegedly affiliated with China’s military.
The lawsuit was filed in federal court in San Jose, California, seeking the removal of Alibaba from the US Department of Defense’s blacklist of companies affiliated with the Chinese military. As of June 30, companies on this list are prohibited from providing goods, services, or technology to the Department, with additional restrictions beginning in 2027.
Alibaba has filed a lawsuit against the United States Department of Defense, insisting the classification of the company as a “Chinese military company” is unfounded and lacks legal basis. In response to the Pentagon’s designation, China’s embassy in Washington condemned the move as “discriminatory” and called for an end to practices that harm Chinese businesses operating overseas.
What remains unclear — It is not specified how Alibaba intends to challenge the US government’s designation in court.
Alibaba files lawsuit against US Department of Defense over military label
News|CourtsAlibaba sues US military over labelling it a ‘Chinese military company’
The e-commerce giant says that the US government’s claims that it is affiliated with the Chinese military have ‘no basis in fact or law’.
Published On 23 Jun 202623 Jun 2026
The Chinese e-commerce company Alibaba has filed a lawsuit against the United States Department of Defense for labelling the retailer a “Chinese military company”.
A court filing from Alibaba on Tuesday contests that designation, arguing that the e-commerce giant is not affiliated with the Chinese military.
“The determinations have no basis in fact or law,” the company said in its lawsuit. “Alibaba is governed by an independent board, none of whom has any military affiliation.”
“Its products and services are built for retail, logistics, and enterprise information technology — not weapons, defense, or intelligence,” the company added.
The lawsuit was filed in a federal court in San Jose, California, and seeks the removal of Alibaba’s name from a growing list of companies blacklisted for alleged affiliations with China’s military.
The US added Alibaba to a list of companies believed to be assisting the Chinese military on June 8, along with Chinese firms such as BYD and Baidu.
Alibaba at the time warned that it would take legal action to contest the designation.
“Alibaba is not a Chinese military company nor part of any military-civil fusion strategy,” a company spokesperson said following the designation. “We will take all available legal action against attempts to misrepresent our company.”
China’s embassy in Washington, DC, slammed those designations as “discriminatory”.
“Chinese companies that do business overseas have been strictly observing laws and regulations of their host countries,” an embassy spokesperson said. “The US should stop its wrong practice and create a fair, just and non-discriminatory environment for Chinese companies.”
The Pentagon’s list of designated “Chinese military companies” has risen to include 188 firms, up from 134 in 2025, as the US ratchets up pressure on the Chinese tech sector.
Companies included on the list cannot provide “goods, services or technology” to the Department of Defense, as of June 30.
Starting in 2027, the Pentagon will also be prohibited from “contracting for goods and services” from such groups, even if they arrive through a third party.
US government contracts are often highly sought-after by tech firms as lucrative commercial opportunities.
In a statement, the Pentagon accused Alibaba of being “a military-civil fusion contributor to the Chinese defense industrial base because it is affiliated with MIIT”, an acronym for China’s Ministry of Industry and Information Technology.